State Sen. Chris Rose has introduced legislation that allows the West Virginia Department of Treasury to diversify its holdings by including digital assets and precious metals.
The 2025 Inflation Protection Act, filed on February 14, proposes that investments in digital assets with market capitalizations exceeding $700 billion.
Currently, this applies only to Bitcoin (BTC), with Ethereum’s (ETH) $328.3 billion market capitalization falling above 50% below the mandated threshold.
The bill limits investments in digital assets and precious metals for 10% of the Total Financial Fund and provides the flexibility to hold assets through on-chain or exchange sales funds (ETFs).
Advocates argue that such diversification could provide hedges against inflation and fiscal instability, especially as concerns rise over the long-term impact of deficit spending at both the state and federal levels. Masu.
State growth trends
West Virginia is one of almost 20 states in the US considering digital asset reserves as a strategy to protect public funds from devaluation of public funds. This trend began in Wyoming in 2024.
On February 6, the Utah House of Representatives approved a similar bill. This is currently awaiting a Senate vote. If passed, the state’s Treasury Department will allow funds to be allocated to Bitcoin, high-value altcoins and stubcoins, reflecting its widespread acceptance of digital assets as legitimate spares. I will.
Kentucky introduced the law on the same day to allow up to 10% of state funds to be allocated to Bitcoin and other digital assets. The move follows growing legislative interest in digital currency as an alternative reservoir of value amid concerns over rising inflation and national debt.
Michigan filed a lawsuit on February 13th, with representatives Brian Poshummus and Ron Robinson proposing a digital asset reserve bill. Unlike similar measures in other states, Michigan’s proposal does not specify asset type restrictions and could allow for a wider range of crypto investments.
Other states include Texas, Wyoming, North Dakota, North Carolina, South Dakota, Massachusetts, New Hampshire, Ohio, Pennsylvania, Maryland, Iowa, Arizona, Oklahoma, Tennessee and Wisconsin. Meanwhile, lawmakers and regulators from several other states are calling for similar legislative measures.
At the federal level, President Donald Trump recently directed the working group to explore the feasibility of the National Digital Assets Reserve as part of an executive order signed last month.
This initiative is particularly evolving as the regulatory environment for digital assets continues to evolve, and individual states may act before federal policymakers when integrating Bitcoin into government financial strategies. It encouraged the speculation that there was.
Potential economic impacts
Analysts suggest that increasing state-level adoption of Bitcoin Reserve could drive additional demand for digital assets, affecting market prices and broader financial market trends.
A recent analysis by asset management firm Vaneck shows that states pursuing such laws could contribute up to $23 billion in demand for Bitcoin.
This trend also marks the rise of more institutional involvement in the digital asset space as the state’s Treasury begins treating Bitcoin as a legitimate reserve asset, along with valuable traditional and valuable storage such as gold. It may promote.
As more states pursue similar initiatives, financial experts predict that legislative efforts to integrate digital assets into public funds will gain even more traction. However, critics warn that volatility in Bitcoin’s price could pose risk to the public finance ministry, and a careful risk management strategy is needed.
The West Virginia bill will carefully look at how lawmakers and analysts navigate the challenges and opportunities of digital asset adoption, and proceed to committee reviews before further legislative considerations. Masu.
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